Last week Monday, I forecasted that the U.S. national average could rise to $3.73 today while prices in Canada could rise to 127.2c/L.

It would appear that I was a bit high in both forecasts for the U.S. and Canada. Prices in Canada are currently showing up as 126.6c/L while prices in the U.S. currently sit at $3.705 per gallon.

A new week brings new hope and seemingly an agreement in regard to the political battle of increasing the debt ceiling. Many have asked what this could mean for oil prices- it could mean two completely different paths.

An agreement could mean a stronger U.S. dollar which generally pushes oil prices downward as oil is traded globally in dollars. On the other side, the currency side of oil trading could be ignored for bullish sentiment that an agreement could mean a more stable and improving economy as the U.S. takes its fiscal situation seriously. That could cause oil prices (and inherently gasoline prices) to rise as it is viewed that a healthy economy means more consumption.

I expect that oil prices will continue to gyrate between $95-$99. If the breach the $100 target, we could see big trouble. For this week, my eyes (or at least one) will be focused on the reaction to the debt ceiling "agreement".

Having said all this, by next Monday I expect average prices in the U.S. to fall slightly to $3.69 per gallon, while in Canada prices will fall to 126.2c/L. Most communities will see small (if any) decreases. If there's any new news, we'll cover it on the GasBuddy Facebook page

Here's a non-political comment, although I can't resist getting up on the soap box anyhow ...

What is the purpose of these predictions concerning the forecast price of retail gasoline? As we get more and more disgusted with the continually rising price, why can't we get the government to do something about controlling the situation? Has anybody in Washingtom got the balls to do that, or at least try?

You were off PD because Obama was having trouble getting his money and the US was going to "Go To Hell In A Hand Basket". We all knew that.

Now that Obama is about to have the limit on the credit card raised by another $2.1 Trillion, we'll all be spending again till 2013. Naturally gas prices will go up. Gold is going down but thank god cars don't run on that.

Calgary stations did an early call as well as raise the prices Thurday ahead of our Civic Holiday (Aug 1st. this year) from 110.9 to about 116.9 a litre. A nice 5% hike, thank you very much!

The debt crisis will shake the investor confidence which will in turn lower the American dollar on the world market. Most American oil is imported and therefore cost more to buy from foriegn companies. This I understand... my question is... why is our gas in Canada almost double the American?

What would happen if the Baakan oil field in North Dakota really started producing? The reserves are supposed to be in the trillions according to the U.S.G.S. Why are we not really getting on that one. If obama won't do Natural Gas we could at least get away from opec. This would also negate the need for Canadian oil shale crude which is supposed to be dirty.